Business Models 101:Key Activities
In this of our Business Model Tutorial we will discuss the Key Activities of your business.
I have to repeat it on every page but starting a company on your own, creating value for you, your family and
the world is a totally recommendable thing to do. You want to create your
company. This is GREAT. The world has been made by
people like you. Entrepreneurs. Self-Made Men, Creators, Builders people
that believed an obstacle is just another great challenge to overcome, to
solve and put behind them as an achievement.
The Key Activities
This is an obvious subject but difficult one. Because
you have to clearly understand what you are doing and how you do it. It is
not only essential that you see all the activities that you have to do, but
because a day has only 24hours, you have to focus on the main ones and
delegate the non essential ones.
In order for your company to develop you will have to do
stuff. What you do most of the time will be your key activities. If it is
writing a website about Excel and related stuff, the activities are to look
for what your readers need and try to solve them, it is also to check the
market, give them news about it (like a new release of Excel or other events
like this) and advise them what to do about it. Another activity, will be
the marketing of my website, for example to advertise it in various
institutions or websites.
If your are a cupcake factory, then your key activities will
be to find the right recipes, do market research, find customers, find the
right equipment and of course produce cupcakes. But also there is the
cleaning of your company, may be this can be done during the hours where you
rest (after 9pm) and by a cleaning company. This is typically a non
essential activity.
Key activities change over time.
When you are at the very beginning, setting up of the
company to generate the key activities (finding funds, building, equipment,
creating recipes, etc…)
once this is done, it is the backing, selling,
shipping, marketing, find the customers, web site, etc.... that will take
your time.
An activity generates cost or revenue/profit. If you do not
concentrate on the proper activities then you will whether lose money or not
earn properly.
Every block in our business model diagram or business model canvas template will generate
activities. So you have to browse through them ALL and look at what key activities are needed by:
A cost will be associated to every activity that is created. The costs have
to be clearly written down. You can then create a Excel Entry with all these
costs. They should be balanced with the income stream you are generating.
Previous: Revenue Streams
Next: the Key Resources
Download the excel business model canvas Template from here.
Please Tweet, Like or Share us if you enjoyed.